Goldman Sachs 4th Quarter Earnings Below Forecast Due To Credit Provision
We finally have the EPS results for the 4th quarter of Goldman Sachs (GS). According to the report, the EPS was 40% lower than the market expectations. The reason for this is due to the revenue drop from wealth and asset management.
In addition, Goldman Sachs (GS) is also going through high operating costs and higher credit provisions. Both of these things are eating away at the company's revenue.
These numbers have also confirmed how the blue-chip stocks from Wall Street had one of their worst year ever. And the sole reason for such poor performance was the high-interest rates policy adopted by the Fed.
As a result of this move by the Fed, Goldman Sachs earned less money from the capital markets and their merger advisory work.
Goldman Sachs EPS Is $3.34 For The 4th Quarter
The Goldman Sachs EPS is around $3.34 for the 4th quarter. When compared with the same time period last year, the current numbers are down by almost two-thirds. In addition, the markets were expecting an EPS of $5.56, while the actual value turned out to be $3.34 only!
Similarly, the revenue of Goldman Sachs was around $10.59 billion, which is a decrease of 16% when compared with last year.
According to sources, the fees earned by Goldman Sachs from its wealth management and asset management departs also saw a decline of 27%.
On the contrary, the currency traders and the dealmakers of Goldman Sachs posted a little higher revenue for the same period. However, the trading of the equities sale was also lower than the consensus.
The bank has also recorded $972 million worth of charges against the potential losses from its POS loan and credit card portfolios.
Overall, it was a disappointing year for a big bank such as Goldman Sachs. But when we consider how it was a difficult year for all the major companies around the globe, things don't look as bleak as before!